Six Steps To Buying An Affordable Home With Homebuy

The buying process for First Time Buyers or Keyworkers acquiring an affordable new home via a HomeBuy scheme is quite straightforward and the authorised HomeBuy Agent for the area where you're hoping to buy should help you through it in detail and be able to answer specific questions about your own circumstances. This is the general process for purchasing with a HomeBuy scheme:

Step 1: Qualifying for helpYou'll need to check whether you are eligible for help with a HomeBuy scheme. HomeBuy schemes are available to households with a combined income of £60,000 a year or less. You can buy a household whether you are a single buyer,a couple or a group of friends buying together. The schemes are available to first-time buyers, council or housing association tenants and those who used to own a home, but can no longer afford to buy one.

Step 2: Making an applicationYou will need to get an application form from your local HomeBuy Agent, a housing association that has been authorised by the Government to administer all HomeBuy schemes in their designated region. You can find the name of the local HomeBuy Agent you're looking for here. The Agent will have details of all HomeBuy properties in its area. You can normally make your application on line, or phone for a form to be sent to you.

Step 3: Picking your new apartment or new houseYour local HomeBuy Agent will provide you with a selection of properties to choose from in your area. The Agent will interview you and make sure the criteria of the scheme is met and that you can afford it. The costs involved in a HomeBuy scheme will vary depending on the value of the property, and there are additional costs to consider as well, such as insurance, water, gas, electricity and rates. There may also be block maintenance on an apartment and other charges. Your HomeBuy Agent will go through these with you.

Step 4: Paying a reservation feeOnce you have found your new home, you may be asked to pay a reservation fee. This can range from £100 to £1,000 and it is taken off the overall purchase price if you do proceed with buying the property. Be aware that you might not get your reservation fee refunded if you simply change your mind and decide not to buy, or if you made false statements in your application.

Step 5: Getting a mortgageMost HomeBuy Agents will arrange for you to speak with an independent financial advisor and help you find the right mortgage provider and solicitor. They will also check your application and require proof of earnings, eligibility to live in the UK, and tax payments and they will run through your income and expenditure. The share of the property that you are able to afford to buy will be claculated - more shares are always available in the future.

Step 6: Paying a deposit to completionAfter appointing a solicitor and getting a mortgage offer, the housing association that owns the home you want will commence the process of selling you the agreed share of the property. Your mortgage lender will normally require you to pay for a survey of the property, and your solicitor will require you to forward them your deposit. If there are no issues with your mortgage or the survey then you will be asked to sign contracts, at which point you are bound by law to buy your new home. You'll then get a moving date, or a completion date if the property is still under construction, when your final balance is payable.

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